XML 45 R35.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended
--- | ---
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instruments, Location, Designated and Non-Designated, Gains (Losses) | The gains (losses) on derivatives in cash flow hedging relationships recognized in OCI for the indicated periods were as follows:
| Three months ended |  | Six months ended
| December 31, |  | December 31,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Derivatives Designated as Hedging Instruments: |  |  |  |  |  |  |
Rate lock agreements: |  |  |  |  |  |  |
Amounts included in the assessment of effectiveness | $ | (17,752 | ) |  | $ | — |  |  | $ | (5,396 | ) |  | $ | — |
Foreign exchange contracts: |  |  |  |  |  |  |
Amounts included in the assessment of effectiveness | $ | (1,201 | ) |  | $ | 697 |  |  | $ | 237 |  |  | $ | 1,141 |
Amounts excluded from the assessment of effectiveness | $ | (29 | ) |  | $ | — |  |  | $ | (29 | ) |  | $ | — |
The locations and amounts of designated and non-designated derivative’s gains and losses reported in the condensed consolidated statements of operations for the indicated periods were as follows:
| Three months ended December 31, |  | Three months ended December 31,
| 2018 |  | 2017
(In thousands) | Revenue |  | Cost of revenues |  | Interest expense |  | Other income (expense), net |  | Revenue |  | Cost of revenues |  | Interest expense |  | Other income (expense), net
Total amounts presented in the condensed consolidated statement of operations in which the effects of cash flow hedges are recorded | $ | 1,119,898 |  |  | $ | 408,260 |  |  | $ | 26,538 |  |  | $ | (9,228 | ) |  | $ | 975,822 |  |  | $ | 347,002 |  |  | $ | 27,372 |  |  | $ | (7,824 | )
Gains (losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gains (losses) reclassified from accumulated OCI to earnings | $ | — |  |  | $ | — |  |  | $ | 189 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Amount of gains (losses) reclassified from accumulated OCI to earnings as a result that a forecasted transaction is no longer probable of occurring | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (108 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gains (losses) reclassified from accumulated OCI to earnings | $ | 1,705 |  |  | $ | (158 | ) |  | $ | — |  |  | $ | (3 | ) |  | $ | 397 |  |  | $ | 377 |  |  | $ | 189 |  |  | $ | — |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | $ | 80 |  |  | $ | (8 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Amount excluded from the assessment of effectiveness | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (220 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (158 | )
Gains (losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (3,700 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,237 |
| Six months ended December 31, |  | Six months ended December 31,
| 2018 |  | 2017
(In thousands) | Revenue |  | Cost of revenues |  | Interest expense |  | Other income (expense), net |  | Revenue |  | Cost of revenues |  | Interest expense |  | Other income (expense), net
Total amounts presented in the condensed consolidated statement of operations in which the effects of cash flow hedges are recorded | $ | 2,213,158 |  |  | $ | 789,647 |  |  | $ | 52,900 |  |  | $ | (19,253 | ) |  | $ | 1,945,403 |  |  | $ | 700,119 |  |  | $ | 57,948 |  |  | $ | (12,207 | )
Gains (losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gains (losses) reclassified from accumulated OCI to earnings | $ | — |  |  | $ | — |  |  | $ | 377 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Amount of gains (losses) reclassified from accumulated OCI to earnings as a result that a forecasted transaction is no longer probable of occurring | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gains (losses) reclassified from accumulated OCI to earnings | $ | 2,688 |  |  | $ | (292 | ) |  | $ | — |  |  | $ | (18 | ) |  | $ | 1,365 |  |  | $ | 1,338 |  |  | $ | 378 |  |  | $ | — |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | $ | 80 |  |  | $ | (8 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Amount excluded from the assessment of effectiveness | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (88 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (229 | )
Gains (losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 63 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,676 |
Schedule of Notional Amounts of Derivatives Outstanding | The U.S. dollar equivalent of all outstanding notional amounts of foreign currency hedge contracts, with maximum remaining maturities of approximately ten months as of December 31, 2018 and June 30, 2018, were as follows:
(In thousands) | As of December 31, 2018 |  | As of June 30, 2018
Cash flow hedge contracts - foreign currency |  |  |
Purchase | $ | 777 |  |  | $ | 8,116 |
Sell | $ | 84,302 |  |  | $ | 115,032 |
Other foreign currency hedge contracts |  |  |
Purchase | $ | 163,758 |  |  | $ | 130,442 |
Sell | $ | 173,793 |  |  | $ | 154,442 |
Schedule of Derivative Instruments, Fair Value | The locations and fair value of our derivatives reported in our Condensed Consolidated Balance Sheets as of the dates indicated below were as follows:
| Asset Derivatives |  | Liability Derivatives
| Balance Sheet Location |  | As of December 31, 2018 |  | As of June 30, 2018 |  | Balance Sheet Location |  | As of December 31, 2018 |  | As of June 30, 2018
(In thousands) |  | Fair Value |  |  | Fair Value
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |
Rate lock contracts | Other current assets |  | $ | — |  |  | $ | 219 |  |  | Other current liabilities |  | $ | 10,955 |  |  | $ | 5,158 |
Foreign exchange contracts | Other current assets |  | 102 |  |  | 3,259 |  |  | Other current liabilities |  | 649 |  |  | 312 |
Total derivatives designated as hedging instruments |  |  | 102 |  |  | 3,478 |  |  |  |  | 11,604 |  |  | 5,470 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Other current assets |  | 1,630 |  |  | 1,907 |  |  | Other current liabilities |  | 2,714 |  |  | 1,358 |
Total derivatives not designated as hedging instruments |  |  | 1,630 |  |  | 1,907 |  |  |  |  | 2,714 |  |  | 1,358 |
Total derivatives |  |  | $ | 1,732 |  |  | $ | 5,385 |  |  |  |  | $ | 14,318 |  |  | $ | 6,828 |
Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments | The changes in OCI, before taxes, related to derivatives for the indicated periods were as follows:
| Three months ended December 31, |  | Six months ended December 31,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Beginning balance | $ | 15,103 |  |  | $ | 6,452 |  |  | $ | 2,346 |  |  | $ | 8,126 |
Amount reclassified to earnings | (1,736 | ) |  | (963 | ) |  | (2,773 | ) |  | (3,081 | )
Net change in unrealized gains or losses | (18,982 | ) |  | 697 |  |  | (5,188 | ) |  | 1,141 |
Ending balance | $ | (5,615 | ) |  | $ | 6,186 |  |  | $ | (5,615 | ) |  | $ | 6,186 |
Offsetting of Assets and Liabilities | information related to the offsetting arrangements for the periods indicated was as follows (in thousands):
As of December 31, 2018 |  |  |  |  |  | Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |  |
Description |  | Gross Amounts of Derivatives |  | Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |  | Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives - Assets |  | $ | 1,732 |  |  | $ | — |  |  | $ | 1,732 |  |  | $ | (995 | ) |  | $ | — |  |  | $ | 737 |
Derivatives - Liabilities |  | $ | (14,318 | ) |  | $ | — |  |  | $ | (14,318 | ) |  | $ | 995 |  |  | $ | — |  |  | $ | (13,323 | )
As of June 30, 2018 |  |  |  |  |  | Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |  |
Description |  | Gross Amounts of Derivatives |  | Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |  | Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives - Assets |  | $ | 5,385 |  |  | $ | — |  |  | $ | 5,385 |  |  | $ | (1,888 | ) |  | $ | — |  |  | $ | 3,497 |
Derivatives - Liabilities |  | $ | (6,828 | ) |  | $ | — |  |  | $ | (6,828 | ) |  | $ | 1,888 |  |  | $ | — |  |  | $ | (4,940 | )

X
- Definition Offsetting Assets and Liabilities [Table Text Block] + References No definition available. + Details
Name: | klac_OffsettingAssetsandLiabilitiesTableTextBlock
Namespace Prefix: | klac_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfCashFlowHedgesIncludedInAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration